Air Arabia (DFM:AIRARABIA) posted a 42% year-on-year fall in third-quarter net profit to AED383mn ($104mn) as revenue rose 10% to AED2.31bn ($629mn), the carrier said on 12 November.
The airline carried more than 5.7 million passengers in the quarter, 3% fewer than a year earlier, at an 82% seat load factor. The regional conflict drove up fuel and supply-chain costs. Revenue still grew, and the group’s new Saudi hub in Dammam opens its first international route, to Amman, on 19 November.
“We are pleased to have recorded our third consecutive profitable quarter this year amid a challenging operating environment,” said Sheikh Abdullah Bin Mohammad Al Thani, chairman of Air Arabia. “The ongoing regional conflict continued to weigh on the overall operating environment, driving higher costs, fuel price volatility, and persistent supply chain constraints, which in turn impacted profitability.”
For the first nine months, net profit fell 47% to AED757mn ($206mn). Revenue rose 2% to AED5.81bn ($1.58bn) from AED5.71bn. Passenger numbers dropped 10% to 14.4 million, with an average load factor of 83%.
Air Arabia began flying from King Fahd International Airport in Dammam on 20 September, with domestic services to Jeddah, Madinah and Riyadh. Saudi Arabia’s General Authority of Civil Aviation granted the operating certificate to the new national budget carrier, set up by an Air Arabia-led consortium with Nesma Group and KUN Investment.
Air Arabia Dammam announced on 11 November that it will fly five times a week between Dammam and Queen Alia International Airport in Amman. It flies Airbus A320s with 174 seats in a single-class cabin.
“Launching our first international service marks an important step in the growth of our Dammam operations,” said Adel Al Ali, group chief executive of Air Arabia. “We look forward to expanding our domestic network and adding more international destinations as demand grows.”
The group launched 14 routes in the first nine months across its hubs in the UAE, Morocco, Egypt, Pakistan and Saudi Arabia, taking its network to 224 routes. It added 10 aircraft, giving it a fleet of 100 owned and leased Airbus A320 and A321 jets.
Four more aircraft are due to join the fleet before the end of 2026.
